close

De Beers closes diamond mine due to plummeting demand

Large rough diamond.

Diamond company De Beers has announced the closure of a diamond mine run by Debswana Mining Company which it jointly owns with the Botswanan government.

The coronavirus pandemic has caused both low demand and disruption to trade, Reuters reported, forcing De Beers to make the decision to close the Damtshaa mine next year.

The closure will reportedly last for up to three years, with the long-term plan being to reopen the site eventually.

Story continues below
Advertisement

The stones from this particular mine typically have a lower value than those from other sites, Reuters reported, which explains the decision to keep others functional at this point.

This news flies in the face of De Beers’ claims that its sales are stronger than ever, which it said last month.

A financial report said that the company’s rough diamond sales were up 50% compared to the same period last year.

Read more on this below:

De Beers rough diamond sales up more than 50% compared to 2019

Tags : botswanaDe Beers
Sam Lewis

The author Sam Lewis

Leave a Response